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2021-12-31-accounts

COMPANY REGISTRATION NUMBER: 07952733 CHARITY REGISTRATION NUMBER: 1149720

SOLACE UK LTD Company Limited by Guarantee Unaudited Financial Statements

31 December 2021

BEGG, WILLIAMSON & CO

Chartered Certified Accountants

24 Church Road Crystal Palace London SE19 2ET

SOLACE UK LTD

Company Limited by Guarantee

Financial Statements

Year ended 31 December 2021

Page
Trustees' annual report (incorporating the director's report) 1
Independent examiner's report to the trustees 6
Statement of financial activities (including income and
expenditure account) 7
Statement of financial position 8
Notes to the financial statements 9

SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 December 2021

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2021.

Reference and administrative details

Registered charity name SOLACE UK LTD Charity registration number 1149720 Company registration number 07952733 Principal office and registered PO BOX 60049 office SUNNYHILL HOUSE 3-7 SUNNY HILL ROAD LONDON SW16 9FP The trustees MS. A. HURNI MS. B. QUADRI MS. J L DJELLOUL MS. S. CLEMENTS MS. W O BABALOLA MS. S E AROUCHE Independent examiner Z F BEGG-FCCA Begg Williamson & Co 24 Church Road Crystal Palace London SE19 2ET

Structure, governance and management

1

SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Objectives and activities

Summary of Objects set out in our governing document:

TO ADVANCE THE FAITH OF ISLAM IN PARTICULAR BY SUPPORTING, AIDING AND EMPOWERING WOMEN WHO ARE OR HAVE REVERTED OR RETURNED TO THE ISLAMIC FAITH (AS REVERT SISTERS) AND WHO ARE IN NEED SO THEY CAN FULLY ADVANCE THEIR RELIGION.

Public Benefit:

The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit Charities and Public Benefit.

Solace UK is a charity which aims to advance the faith of Islam in particular by supporting, aiding and empowering women who are or who have reverted or returned to the Islamic faith (as revert sisters) and who are in need so they can fully advance their religion.

In setting and reviewing Solace's strategic objectives, the charity has had due regard for the Charity Commission's guidance on public benefit. The guidance sets out the requirement that all organisations wishing to be recognised as charities must demonstrate, explicitly, that their aims are for the public benefit.

In delivering its objectives, Solace UK provides the following identifiable public benefits through the advancement of faith in particular supporting, aiding and empowering women who are or have reverted or returned to the Islamic faith:

Strategic report

The following sections for achievements and performance and financial review form the strategic report of the charity.

2

SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Achievements and performance

In 2021, Solace UK developed a 10-year strategy. Solace UK delivered the following activities, projects and services:

1-1 Support Service

Solace UK's core service continued into its 10th year. The 1-1 Support Service is a person-centred provision where a beneficiary is allocated a support worker. An initial assessment of her circumstances and needs is carried out. This is followed by an action plan where the support worker helps the beneficiary to achieve goals. These goals can be anything from faith-based goals to marital resolution to practical support, and more.

In 2021, 558 women were supported through the 1-1 Support Service ranging from different ethnicities, age groups and worldwide geographical locations.

Through Solace's flagship service, reverted women have been emotionally and practically supported. They have been empowered to make a difference in their lives and others. They have begun work to process trauma. Many of them were also struggling financially with rent costs, food and clothing costs and debt. They received financial support which lessened their financial and emotional burden. There were also a number of women who found themselves in homeless circumstances, Solace was able to assist them with emergency housing.

In addition to being assigned a trained support worker for 1-1 support, beneficiaries and their dependants in 2021 were:

  1. Fed and clothed, and their basic needs were covered.

  2. In receipt of care packages through gifts, days out together, toys, Eid gatherings and Eid gifts. 3. Protected and kept safe by helping them stay in their own homes.

  3. Provided with emotional and spiritual support.

  4. In receipt of investment in their learning and education.

  5. Supported with alleviation of debt with zakat from donors.

  6. Supported in death with fully paid burial costs.

  7. Helped as they battled domestic violence and mental health struggles linked to trauma and abuse. 9. Helped with their means of livelihood, ensuring they have the knowledge and support to set up successful businesses to provide for themselves and their families.

2021 saw the launch of three new services:

  1. Business Training and Start Up Funds for revert sisters on low incomes.

  2. Financial Literacy Training

  3. Psychotherapy Support Programme which provides professional counselling for revert women for free

Sponsor a Revert Our Sponsor a Revert campaign saw 68 sponsored revert sisters in difficulties who received the following support:

Emotional support sessions Counselling Islamic courses Attendance to retreats Online Islamic courses

3

SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Marriage webinars Islamic clothing Food vouchers Travel assistance Retreats Single Mum

Our Single Mother Relief project saw single mothers and their children supported with: Food vouchers

Eid gifts for their children School uniform assistance Business start up funds Retreats Trips Counselling

We believe our objectives provide public interest, in that we are aiding individuals in a holistic manner and encouraging them to become better members of society which in turn has a positive effect upon their own families and communities.

Events

2021 was another unusually quiet year due to the slow easing of Covid19 Lockdown restrictions. In 2020, we ran 0 events. In 2021 we ran a 7 Bridge, 5 mile sponsored walk. We also hosted Support focus groups in Ramadan and at Christmas time for reverted women who were feeling lonely and isolated.

Awareness

2021 was a year of building awareness surrounding the plight faced by our beneficiaries. Solace created awareness in a number of ways. This was namely done online via a number of social media campaigns, that were particularly held during the month of Ramadan, namely the Revert Support Challenge. Through these campaigns, we were able to highlight the array of various difficulties encountered by revert women were launched. Speeches in mosques around the country took place. The Solace blog also continued, providing our beneficiaries with heartfelt articles - there to support them during their time of need. With covid19 lockdown restrictions eased, we held two in person raising awareness campaigns: a) 7 Bridge, 5 mile sponsored walk for families and b) The Al-Noor Dragonboat Race. Both were successful in highlighting the difficulties faced by our beneficiaries as well as raising much needed funds to continue Solace's services.

Other

For the 10th year running, eid gifts were sent out at eid time which is always so well received by Solace's beneficiaries. During very difficult circumstances with many unable to share Ramadan and eid with family due to their different faith, eid gifts really do provide solace.

4

SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Financial review

Financial review

All income of the charity was received by way of donations from public individuals or companies. At the end of the financial year, Solace UK had: Income £378,271, Spending £187,150

Reserve Policy

The trustees aim to maintain free reserves in unrestricted funds at a level which equates to 6 months of unrestricted charitable expenditure which we believe is sufficient.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 15th July 2022 and signed on behalf of the board of trustees by:

The trustees' annual report and the strategic report were approved on 21 September 2022 and signed on behalf of the board of trustees by:

MS. B. QUADRI Trustee

MS. S. CLEMENTS Trustee

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SOLACE UK LTD

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of SOLACE UK LTD (continued)

Year ended 31 December 2021

I report to the trustees on my examination of the financial statements of SOLACE UK LTD ('the charity') for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since your charity’s gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Association of Chartered Certified Accountants which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Z F BEGG- FCCA Independent Examiner

Begg Williamson & Co 24 Church Road Crystal Palace London SE19 2ET

21 September 2022

6

SOLACE UK LTD

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 December 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 169,710 208,549 378,259 169,146
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total income 169,710 208,549 378,259 169,146
================================ ================================ ================================ ================================
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 6 15,733 2,551 18,284 12,601
Expenditure on charitable activities 7,8 62,930 105,938 168,868 136,695
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total expenditure 78,663 108,489 187,152 149,296
================================ ================================ ================================ ================================
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Net income and net movement in funds 91,047 100,060 191,107 19,850
================================ ================================ ================================ ================================
Reconciliation of funds
Total funds brought forward 303,874 99,463 403,337 383,487
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total funds carried forward 394,921 199,523 594,444 403,337
================================ ================================ ================================ ================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 9 to 16 form part of these financial statements.

7

SOLACE UK LTD

Company Limited by Guarantee

Statement of Financial Position

31 December 2021

2021 2020
Note £ £
Fixed assets
Tangible fixed assets 13 138 221
Current assets
Debtors 14 26,689 8,650
Cash at bank and in hand 575,207 398,694
-------------------------------- --------------------------------
601,896 407,344
Creditors: amounts falling due within one year 15 7,590 4,228
-------------------------------- --------------------------------
Net current assets 594,306 403,116
-------------------------------- --------------------------------
Total assets less current liabilities 594,444 403,337
================================ ================================
Funds of the charity
Restricted funds 199,523 99,463
Unrestricted funds 394,921 303,874
-------------------------------- --------------------------------
Total charity funds 16 594,444 403,337
================================ ================================

For the year ending 31 December 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 21 September 2022, and are signed on behalf of the board by:

MS. B. QUADRI Trustee

MS. S. CLEMENTS Trustee

The notes on pages 9 to 16 form part of these financial statements.

8

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 December 2021

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is PO BOX 60049, SUNNYHILL HOUSE, 3-7 SUNNY HILL ROAD, LONDON, SW16 9FP.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.

9

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued)

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

10

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

11

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued)

Impairment of fixed assets (continued)

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

12

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued)

Financial instruments (continued)

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Limited by guarantee

Solace (UK) ltd is a private company limited by guarantee without share capital. The members guarantee in case of winding up, or within one year after ceasing being a member they will contribute to the assets of the company as required to settle any debts or liabilities and any payment of costs in winding up the company.

5. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
Donations 151,837 208,549 360,386
Gifts
Gift Aid 17,873 – 17,873
-------------------------------- -------------------------------- --------------------------------
169,710 208,549 378,259
================================ ================================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Donations 82,622 78,146 160,768
Gifts
Gift Aid 8,378 – 8,378
---------------------------- ---------------------------- --------------------------------
91,000 78,146 169,146
============================ ============================ ================================
Costs of raising donations and legacies
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Costs of raising donations 7,020 804 7,824
Costs of raising donations and legacies 8,713 1,747 10,460
---------------------------- ----------------------- ----------------------------
15,733 2,551 18,284
============================ ======================= ============================

6. Costs of raising donations and legacies

13

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

11. Staff costs (continued)

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Costs of raising donations 11,280 1,321 12,601
– – –
---------------------------- ----------------------- ----------------------------
11,280 1,321 12,601
============================ ======================= ============================
7. Expenditure on charitable activities by fund type
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Activity 62,930 105,938 168,868
============================ ================================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Activity 38,887 97,808 136,695
============================ ============================ ================================
8. Expenditure on charitable activities by activity type
Activities
undertaken Total funds Total fund
directly 2021 2020
£ £ £
Activity 168,868 168,868 136,695
================================ ================================ ================================
9. Net income
Net income is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible fixed assets 83 83
Foreign exchange differences 517 –
============== ==============
10. Independent examination fees
2021 2020
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 1,200 1,200
======================= =======================

14

SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

11. Staff costs (continued)

11. Staff costs

The average head count of employees during the year was 6 (2020: 6).

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

12. Trustee remuneration and expenses

One or more trustees has been paid remuneration or received other benefits from employment with the charity or a related entity. Payments to trustees as remuneration was approved by the trustees and charities commission. The trustee B Quadri was paid £6,523 (2020 £9,224) for the year as salary. The trustee J Djelloul was paid £8,026 (2020 £7,653) for the year as salary.

13. Tangible fixed assets

Equipment
£
Cost
At 1 January 2021 and 31 December 2021 331
==============
Depreciation
At 1 January 2021 110
Charge for the year 83
--------------
At 31 December 2021 193
==============
Carrying amount
At 31 December 2021 138
==============
At 31 December 2020 221
==============
14. Debtors
2021 2020
£ £
VAT recoverable 438 272
Other debtors 26,251 8,378
---------------------------- -----------------------
26,689 8,650
============================ =======================
15. Creditors: amounts falling due within one year
2021 2020
£ £
Other creditors 7,590 4,228
======================= =======================

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

Year ended 31 December 2021

16. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 January 20 31 Decembe
21 Income Expenditure r 2021
£ £ £ £
Unrestricted fund - General funds 303,874 169,710 (78,663)
394,921
================================ ================================ ============================ ================================
At At
1 January 20 31 December
20 Income Expenditure 2020
£ £ £ £
Unrestricted fund - General funds 263,041 91,000 (50,167)
303,874
================================ ============================ ============================ ================================
Restricted funds
At At
1 January 20 31 Decembe
21 Income Expenditure r 2021
£ £ £ £
Restricted Funds 99,463 208,549 (108,489)
199,523
============================ ================================ ================================ ================================
At At
1 January 20 31 December
20 Income Expenditure 2020
£ £ £ £
Restricted Funds 120,446 78,146 (99,129)
99,463
================================ ============================ ============================ ============================

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